Merz and Lula stress close European-Brazilian cooperation

German Chancellor Friedrich Merz and Brazilian President Luiz Inacio Lula da Silva on Sunday called for ​closer ties between South America's largest economy and ‌the European Union at the opening of the Hanover industrial fair.

Both welcomed the entry into force of the EU-Mercosur free ​trade agreement on May 1.

"This shows that we ​are sticking to the multilateral order, that we ⁠want a rules-based economic system, and that we want ​this cooperation with as few tariffs as possible – ideally none at ​all," Merz said.

Lula described Brazil, this year's partner country at the world's largest industrial trade fair in Hanover, as a reliable ​and important partner, including in the supply of raw ​materials.

Although only about 30% of Brazil's mineral potential has been mapped, ‌the ⁠country already has the world's largest reserves of niobium, the second-largest reserves of graphite and rare earths, and the third-largest reserves of nickel, Lula said.

"These raw materials ​must serve as ​a driver ⁠of economic and social development," he added, calling for greater technology transfer and more ​processing capacity to be established in Brazil.

Lula ​said he ⁠wanted to discuss the full range of economic cooperation with Merz, including artificial intelligence, critical minerals and data centers.

German-Brazilian ⁠government ​consultations are due to take ​place on Monday.

- Reuters